3 Things To Consider Before Buying Foreclosure Houses : Part 1

As so many way to make money from your house, this is the best way to optimize your leverage skill on making money. There is a lot of people who create their empire of wealthy through this method. I'm believe the giant company that involve in this properties knows about it.

Nonetheless, we have to learn and deeply digging the knowledge of this skills before joining into this field.

Today, i read some attractive articles from the internet about this matter. Happily, it's over there. It needs you to grab it and practice only. Despite, we do not know a lot about foreclosure, it should not blocked ourselve from learning, researching and practicing it in good manner.

There 3 basic things to be aware before we buy a foreclosure house.

1 ) Goal : To Resell or to Keep?

Foreclosure houses is basically cheap at the price than the new house. This is a fact because these houses is sold at lower price due to several legal action. As i mentioned early, a foreclosure
houses is owned by someone, then, he cannot pay for long. So banks as a lending sources will foreclosure to get money back.

So, we have to think twice about the right goal before making any decision to buy a foreclosure house. Commonly, this type of houses can be sold at lower price as it can be 10%-50% far from markter price.

Continue...

Lenders : Types & Advantage

Nowadays, Lenders can be banks, mortgage brokers, home builders, and Internet lenders.Bank,

as a famous institution for getting loan is guaranteed by government agencies. They have widest

access to the financial ability due to their power to create credit and multiply it. Most of bank provide loan for home buyer.By going into banking facilities, a good financial relation might be given a good financial rate.

Alternatively, everyone can see a good mortgage brokers agency for their home loan. As we known, mortgage brokers is like an agent for several biggest lenders. So, home buyer can save their time from finding a good rate for their home loan. Morgage brokers provide various access to various lenders. Through that services, home buyer can save their time and simulatneously change their application to the other lenders especially for disqualified application.

For those who're going to buying home at first time, home builders also is a good alternative. They didn't take any mortgage until home is comleted build. This is a good choice expecially for home buyer to won their first home at cheap monthly installment. However, the mortgage still remain to paid after house is completed.

As a conclusion, each of lenders has various advantages and disadvantages, and their financial product ( housing loan ) may have various interest rates. The best is to find a good provider for themselve.

Part 2 : Buying Vs Renting

Previously, I've written a comparison between buying a home or renting it for residential. And, this article will be discuss in detail about the advantage and disadvantage of renting home.

For those who're always moving for various reason, buying a home is not really suitable for them. If they buy a home in that situation, the best way to avoid too high maintenance cost, monthly installment and so on is by renting to others tenant. However, only selected type of house is suitable for rental purpose. Meaning here, if you buy a bungalow, it's not easy to get a tenant due to high rental fees.

By renting a house, actually there is no house ownership. The only biggest risk is you not have any right to that house at all. At anytime, you are facing a risk of the increasing higher rental fees. Even you're not having any difficulty to move away form your rental house, you're get in trouble when you have to paid more for getting in new house at first. Basically, every tenant have to pay at first the double down payment.

Another disadvantage is no tax write -off. So, we cannot get any deduction for our asset in this matter.

Home : Best Time To Buy.

I've read one of article from Yahoo! Real Estate. And this is very interesting to share with others.Most of us believe by buying house will giving a massive of benefit in the future. It is true.

By owning a house, actuall we filled our basic need. This home can be a good asset for long term.Home with good condition, good neighbourhood, have a beautiful evironment and also near to basic facilities will be a great residential for everyone.

There are 2 major factor that will determine the power of ability to buy a house.

Firstly, it's all about market.Let say you have a stabil income from your job, that make you able to pay the mortgage for 15-30 years. Yes...Of course you have the power of purchasing at that time. Anyway, we have to make sure that our purchasing later will not making lost at all.

The market will be a determination to your purchasing action wether it is a profit or a loss.

Home can be rent to others with certain of rental amount. Its a good cashflow. However, we must look at market situation before taking action of buying a house. For certain areas, there are lot of houses at expensive price instead of rural area. So, if the market for housing price is fall, certainly it will effect your expectation of profiting from your home.

Secondly, your ability to pay the mortgage is based on your job, your healthy and also your income stability.If there is something happen in your life such as change your job, you have to recalculate your financial condition. So it will provide you with good backup plan.

As a conclusion, only buying a house if you think that your asset is never been affected by your situation.

Part 1: Buying Vs Renting

Today i would like to write in detail about buying and renting benefit and vice versa. As many people over the world, owning a home is everyone dream. Every family need a home as a place for rest for life.

Buying is a biggest thing to consider. Especially for those who are not really financially stability. Meaning here, they have fixed income from their jobs but they also got many debt around them. Buying a home still need a lot of money even everyone can make a loan. The cost of buying is not happen at the purchasing time, but it will involve several process that need additional money to be done such as lawyer and agreement fees. This is few things to be considered before buying a home. After buying process had been done, the next challenge is cost of home maintenance. Its also have to be counted for avoiding big turbulent later.

Alternatively, owning a flat or house through auction can be help somebody to get his house without spending too much money. However, it still need a lot of process to learn before jumping into auction properties.

As a house ownership, there a lot of responsibility to be taken during owning that assets. Even they will be benefiting through tax write-off, but they still need to be bear with the maintenance ,property taxes , insurance and etc.

Part 2 will discuss more about Renting..to be continued

Things You Need To Consider : Buying House

One of human basic need is home. Fo sure home ownership is the cornerstone of everyone dream. However before we start buying house, there are several things we need to consider :

1) Basically, we have to compare the needs of buying home with our financial capability. Buying a cheap house will not promise a great benefit. Its all depend to our lifestyle. For somebody, they tend to live in harmony area like a home at beach area. So the price of house will not be an indicator for buying a house alone but its also involving our emotion.

2)Secondly, home is a good investment for property fan. Buying home for real estate investment, is a good way to get high profit especially in long term. However, there are fluctuate situation that will make the price of housing at high and low. Even if housing prices don't continue to increas, buying home can be a good financial investment too. Its because the mortgage payments will forces everybody to save. And after 15-30 years, you will own a good substantial asset that can be converted into cash.

More info at here Buying Your First Home

How to Buy My 1st House For Residential?

For most people, house is their biggest investment in their life. The truth is behind of their financial background.

Finding the right first home is involving good location, a price range at affordable, a good neighbourhood and etc.

So before we start buying our first home, we have to:

1) Revise your current financial situation. Sit down and look back at your actual budget and your ability to make mortgage payment.

2) Find any expert around you. They are maybe your friends, family, or other professional people like lawyer or banker. By this way, we can prepare ourselves with good preparation for home buying process

3) Mix it with your desirability, your lifestyle. Even the house is big and beautiful, it’s certainly will not promise you a good environment to live. We have to think twice and took other factors like neighbourhood as an indicator

4) Research...research...research... Yes! This is important thing to do. You have to make a little bit of research on current home prices in the neighbourhoods you plan to target.

Just Do It. :-)

main source : Yahoo Real Estate : Buying My First Home